Apartment and Condominium Absorption Increased in Q2 2017

The Census Bureau, in collaboration with the Department of Housing and Urban Development (HUD), produces the Survey of Market Absorption (SOMA), which tracks apartment and condominium completions, absorption rates (the share of apartments/condos rented or purchased within the first 3 months after completion), and asking rent prices.

In the second quarter of 2017, completions of unfurnished, unsubsidized, privately financed apartments for rent in buildings with five or more units totaled to 73,900, up 19 percent or 11,900 units from the second quarter of 2016. Meanwhile, the absorption rate rose 5 percentage points to 62 percent compared to the same period last year (Figure 1). Although the absorption rate increased in the second quarter, it is still down from its second quarter ranges seen in 2012 to 2015: the mid-60s to 70 percent. The median asking rent was $1,563 in the second quarter of 2017, $135 more than the median asking rent in the second quarter of 2016.